Nissan By The Numbers

1
Future success belongs to those who are
prepared. J. C. Burns
2
Nissan By The Numbers

• Plant Cost 960,000,000 / 1,400,000,000
• Production 250,000 / 400,000 vehicles
• per year
• Employees 4,000 / 5300
• Conveyors 17 miles
• Robots 853

3
Time Lines

• 1st MDA meeting to Legislative Completion -
• 4 months, 3 weeks
• Start of building pad to completion -
• 78 days

4
Time Lines

• Water waste water systems in place -
• 12 months
• Substantial completion of I-55 interchange -14
  months
• Start to 1st car rollout - 32 months

5
Mississippi Investment

• Infrastructure 125,370,000
• Training
  80,000,000
• To Nissan 89,630,000
• Total
  295,000,000

6
Nissan Tax Incentives

• Super Project Jobs Tax Credit
• Franchise Tax
• Sales and Use Tax Exemptions
• Property Tax Fee - In - Lieu
• Vendor Tooling

7
Process Issues

• Deliver project on time and to specification
• Be a good steward of taxpayers money
• Wide latitude in spending and construction due to
  timing issues

8
Solutions To Process Issues

• Set up special management in MMEIA
• Federal help - No overbuilding - Local banks
• State Auditor - Legislature - MDA

9
Comparative Analysis

• Year State Company
  Incentives Per Job
• 1986 Kentucky
  Toyota 68,920
• 1992 South Carolina BMW
  76,578
• 1994 Alabama
  Mercedes 176,569
• 1999 Alabama Honda
  105,333
• 2000 Mississippi Nissan
  85,750

10
Automotive Manufacturing Growth In Mississippi

• 46 New Automotive Manufacturing Announcements
• 5663 New Automotive Manufacturing Jobs
• Nissan Jobs 5,300
• Direct Supplier Jobs 5,363
• Total
  10,663
• New Annual Salaries 332,685,600

11
Is The Project Worth The Price

• BMW - South Carolina - 100,000 cars per year
• 26 suppliers with 2,135
  Jobs
• Mercedes - Alabama - 65,000 cars per year
• 9 suppliers with 1,616
  Jobs
• Nissan - Mississippi - 400,000 cars per year
• 46 suppliers with 5,363
  Jobs

12
Future Projects Checklist

• Financial Condition of State
• Alternative Uses for State Funds
• Economic Development Climate
• Workforce Ability and Availability
• Alternative Projects